(INFY) - Over the past 90 days, five analysts upped their earnings estimates for both this quarter and next quarter

Infosys Technologies Limited (INFY) topped analysts' earnings estimates in 10 out of the past 13 quarters by an average margin of 8.0%. Earnings per share are forecasted to grow 28% over the next 3-5 years. The company increased revenues, expanded gross margins and grew profits for the past six years. INFY has a current dividend yield of 1.0% and its return on equity crushes that of the industry average--36% compared to 13%. Full Analysis Infosys Technologies Limited is a technology services company that, together with its subsidiaries, engages in the design and delivery of information technology-enabled business solutions. INFY exceeded analysts' earnings expectations in 10 out of the past 13 quarters by an average margin of 8.0%. Earnings per share grew 38% over the past five years and are forecasted to grow 28% over the next 3-5 years. The industry, by comparison, is projected to grow by a 15% clip. The company reported first-quarter fiscal 2007 profits of 31 cents per share, which topped the Street's estimate by a solid 12.7%. The result represented a 44.2% year-over-year improvement from 21.5 cents in the prior-year period. Revenues climbed 38.7% to $660 million from $476 million in the first quarter of fiscal 2006. CEO, President and Managing Director Nandan M. Nilekani stated, “Our efforts in building the brand, developing the client base and expanding strategic accounts have fueled our robust organic model.” INFY increased revenues, expanded gross margins and grew profits for the past six years, most recently by 35.2%, 32.0% and 32.5%, respectively, in fiscal 2006. Growing cash flows from operating activities have enabled the company to currently yield 1.0%. Over the past 90 days, five analysts upped their earnings estimates for both this quarter and next quarter. Six analysts submitted higher revisions for this year while four followed suit for next year. The company's return on equity of 36% illustrates management's success in enhancing shareholder value. Furthermore, INFY's return on equity continues to remain the highest among its peers, trumping the industry average of 13%. INFY is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home